Brooks Macdonald Group PLC reported an increase in funds under management in its final-quarter, though it noted Wednesday that ‘outflows have remained elevated’.
Funds under management at its June 30 financial year-end totalled £18.03 billion, up from £17.93 billion at the start of April.
‘We remained dedicated to serving our clients in a changing economic environment. This focus resulted in strong gross inflows, with high demand for wealth management services that provide solutions through the entire investor lifecycle.
‘Outflows have remained elevated but with a more certain political backdrop, lower inflation and the increased likelihood of a reduction in interest rates, we anticipate that these will moderate. We will stay focused on meeting our clients’ investment needs,’ Chief Executive Officer Andrew Shepherd said.
Brooks said it recorded net outflows of £200 million, though it added this was ‘an improvement on the prior quarter’. The outflows were more than offset by a positive investment performance.
‘Investment performance for the quarter was relatively strong at 1.4%, ahead of the benchmark which increased by 1.1% in the period,’ it explained.
‘Group gross inflows in the fourth quarter were £623 million, the highest of any quarter in the financial year, reflecting strong client demand for our broad proposition set.’
For the full-year, net outflows totalled £600 million, in line with guidance. A £1.8 billion boost from investment performance meant its fund under management grew 7.0% on-year from £16.85 billion.
‘Trading performance in the second half was solid, and the group anticipates its full year results to be in line with market expectations,’ it added.
Brooks Macdonald releases annual results, as well as a strategic review of its International business, on September 12.
In March, it said the unit was ‘behind plan’ and it began a strategic probe.
Shares in Brooks Macdonald were down 0.1% to 2,028.50 pence each in London on Wednesday afternoon.
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